FYE FYE March March 20132013

FinancialFinancial BriefingBriefingFinancial Financial BriefingBriefing

A Technology and Intelligence Oriented Companythat Turns Wisdom into Business

NAGASE & CO., LTD.May 27, 2013

◆ Contents ◆◆ Contents ◆

• FYE March 2013 Results

• FYE March 2014 Earnings Projections

• Life & Healthcare Growth Strategies

2

FYE MarchFYE March 2013 Results2013 ResultsFYE March FYE March 2013 Results2013 Results

3

Consolidated Results

R i d d ¥34 4 billi th

(100 millions of yen)

• Recovery in overseas demand; ¥34.4 billion year-on-year revenue growth• Hayashibara, gain on sale of fixed assets contribute to ¥14.1 billion

net profit (¥5.6 billion increase)

12/03 13/03 Change vs. PYPublished

Figures(2Q Revision)

Growth Rate

Net sales ６ ３１８ ６ ６６２ ３４４ １０５％ ６ ７１０ ９９％Net sales ６,３１８ ６,６６２ ３４４ １０５％ ６,７１０ ９９％

Gross profit(GP ratio)

７１６＜11.3%＞

８２５＜12.4%＞

１０９＜+1.1%＞

１１５％ ８４０＜12.5%＞

９８％

SG&A expenses -５８２ -６７０ ８８ １１５％ -６７６ 101％

Operating profit １３４ １５５ ２１ １１６％ １６４ ９５％

Ordinary income １５６ １７９ ２２ １１４％ １７６ 102％

Net income ８５ １４１ ５６ １６６％ １３６ 104％

Exchange rate @79.62 @83.32 @78.00-￥3.7* Newly Consolidated Co's: Six total. New Equity Method Affiliates: 11 Total

(Per-yen exchange rate impact on net sales and operating profit)

4

( y g p p g p )Impact of dollar/yen rate Impact on 13/03 Actual

Net sales ¥4.6 billion +¥17.5 billionOperating profit ¥150 million +¥580 million

Net Sales by Region (Domestic, Overseas)

N t l ¥666 2bil

O D ti

Net sales ¥666.2bil (Domestic ¥361.9bil; Overseas ¥304.3bil)¥34.4bil increase (+5.4%) from the previous fiscal year (Domestic -¥ 4.3bil (-1.2%), Overseas +38.8bil (+14.6%) )

Overseas Sales by Region (vs. PY)

254 156

170 3,000

3,500

2,654

3,043

2,708 2,654 3,043

6,000

8,000 Overseas Domestic

6,602 6,318 6,662

120%

109%

728

858 212 156

1,500

2,000

2,500

Europe and Other

North America

Southeast Asia

3,893 3,663 3,619

,

2,000

4,000 Jan - Dec Jan - Dec Apr- Mar*

Apr- MarApr- MarApr- Mar

118%

1,556 1,759

0

500

1,000 Northeast Asia0

11/03 12/03 13/03

Apr MarApr Mar

113%

100%Overseas Domestic

0 12/03 13/0341 42 46

60%

80%

- Overseas Net Sales Ratio Increase (42% 46%) -Overseas sales contribute more overall; growth inNortheast, Southeast Asia

59 58 54

0%

20%

40%

* Overseas subsidiaries align fiscal years beginning FYE March 2013 (January – December changed to April – March)

5

11/03 12/03 13/03

Net Sales by Segment

N S l b S (100 millions of yen) Net Sales by Segment (vs. PY)

Functional Materials ¥180.0bil (+¥2.9bil, +2%)

■ Increased revenues in the performance chemical business due to increases in coating raw materials and basic chemical sales (spot business) in Singapore

■ Decreased revenues in the speciality chemicals business due to lower sales in raw

Net Sales by Segment

761 830

491 716

5 000

6,000

7,000

Other

(6,318)(6,662)

■ Decreased revenues in the speciality chemicals business due to lower sales in raw materials for industrial oil solutions and fluorochemicals to the auto and textiles markets

Advanced Materials & Processing ¥214.5bil (-¥3.3bil, -2%)

■ Decreased revenues in the colors and imaging business due to lower dyes/additives and information printing materials sales; reorg in textile processing agents and other equity

ff

その他：Other生活関連： Life & Healthcare自動車・エネルギー：Automotive & Energy 電子： Electronics

2,179 2,145

1,104 1,161

2 000

3,000

4,000

5,000 Life & Healthcare

Automotive & Energy

Electronics

Advanced Materialsmethod affiliate businesses also contributed to lower decreases

■ Higher revenues in office equipment and appliances due to increased plastics sales and higher molding tools exports in Northeast Asia

■ Lower revenues in functional films and sheets and plastic molding products business due to lower performance in liquid crystal polarizer film precision inspection equipment sales

電子： Electronics加工材料： Advanced Materials & Processing 機能素材： Functional Materials

1,771 1,800

0

1,000

2,000

12/03 13/03

Advanced Materials & Processing

Functional Materials

Electronics ¥116.1bil (+¥5.6bil, +5%)

■ Lower revenues in electronics chemicals business due to decrease in semiconductors and chemicals used in the manufacturer of LCD panels

■ Higher revenues in electronics materials business due to increased sales of touch-panel materials in Northeast Asia

Change in Net Sales by Segment ( vs. PY) (100 millions of yen)

Automotive & Energy ¥83.0bil (+¥6.9bil, +9%)

■ Lower revenues in Japan due to the end of eco-car subsidies and lower domestic auto sales

■ Higher revenues overseas; anti-Japanese demonstrations in China led to lower sales of automobile-related materials ; however strong performance in North America and

その他：Other生活関連： Life & Healthcare自動車・エネルギー：A t ti & E

69

225

(1)Other

Life & Healthcare

Automotive & Energyautomobile related materials ; however, strong performance in North America and ASEAN push revenues up overall

Life & Healthcare ¥71.6bil (+¥22.5bil, +46%)

■ Consolidation of Hayashibara led to major increase in revenues on the order of ¥24.4 billion

■ Higher revenues in the non Hayashibara fine chemicals business due to solid

Automotive & Energy 電子： Electronics加工材料： Advanced Materials & Processing 機能素材： Functional Materials

29

(33)

56

69

Electronics

Advanced Materials & Processing

Functional Materials

6

■ Higher revenues in the non-Hayashibara fine chemicals business due to solid performance in in vitro diagnostics/medical materials and Nagase ChemteX enzymes

■ Lower revenues in the beauty care products business due to decreased sales in existing mainstay products

Materials (100) 0 100 200 300

Gross Profit by Segment

Gross Profit: ¥82.5bil +¥10.9bil +15.3%<GP ratio：12.4% ＋1.1%>

1,000 Gross Profit by Segment (vs. PY)825

(100 millions of yen)

47 6081

1865

3

600

800Functional Materials ¥12.4bil - ¥0.7bil -5.3% <GP Ratio: 6.9%(-0.5%)>

Advanced Materials

716

229 251

47 60

400

600 & Processing ¥19.9bil - ¥2.1bil -9.9% <GP Ratio : 9.3%(-0.8%)>

Electronics ¥25.1bil +¥2.2bil +9.8%

131 124

221 199200<GP Ratio: 21.7%(＋0.9%)>

Automotive & Energy ¥6.0bil +¥1.2bil +25.7%<GP Ratio: 7 2%(＋0 9%)>131 124

0

機能素材 加工材料電子 自動車・ｴﾈﾙｷﾞｰ

12/03 13/03

<GP Ratio: 7.2%(＋0.9%)>

Life & Healthcare ¥18.6bil +¥10.5bil +130.2%<GP Ratio: 26.1%(＋9.6%)>

Automotive & Energy

Advanced Materials & ProcessingFunctional Materials

Electronics電子 自動車 ﾈﾙｷ生活関連 その他

7

Other

Automotive & Energy

Life & Healthcare

Operating Profit by Segment

Operating Profit: ¥15.5bil +¥2.1bil +16.0%

<Operating Profit by Segment>

70

Operating Profit by Segment (vs. PY) (100 millions of yen)

62

29

60 54

62

3940

50

60

70 12/03 13/03 Functional Materials ¥5.4bil -¥0.8bil -13.6%

Advanced Materials 29

9 7

23

7

0

10

20

30 & Processing ¥2.3bil -¥0.5bil -19.9%

Electronics ¥6.2bil ¥ +0.2bil +4.6%

(36)(34)

(30)

(20)

(10)

0

Automotive & Energy ¥0.7bil -¥0.1bil -18.4%

Life & Healthcare ¥3 9bil +¥3 2bil +464 1%

(50)

(40)

FunctionalMaterials

AdvancedMaterials &Processing

ElectronicsAutomotive& Energy

Other,Corporate,

Eliminations

Life & Healthcare ¥3.9bil +¥3.2bil +464.1%

Life &Healthcare

8

Factors Impacting Operating Income (Factors Impacting Operating Income (PYPY Actual vs. CY Actual vs. CY Actual)Actual) (1)(1)

Impact of change in depreciation

(100 millions of yen)

160 +2

Higher Profits in Life & Healthcare BusinessIncrease due to Hayashibara consolidation +¥3,100 million

Lower profits in Beauty Care Products BusinessDecrease in Existing Product Sales

Impact of change in depreciation and amortization +¥100 million

Impact of change in depreciation and amortization+¥300 million

140

Fall in Domestic ProfitsDecline in abrasives (semiconductor/HDD markets)

Decline in Overseas Profits Higher general and administrative expenses in Southeast Asia

Impact of change in depreciation and amortization +¥200 million +32

Decline in Domestic ProfitsStrength in smart phones and tablets, but weakness in manufacturing subsidiaries

Higher Overseas Profits 140 ¥200 million

-8

155+32g

Growth in smart phones and tabletsGrowth in semiconductor equipment

Impact of change in depreciation and amortization +¥600 million

120 134 -5 +2 -1

Decline in Domestic Profits Weakness in manufacturing subsidiaries

Lower Domestic Profits Weakness in energy related business

100

gDecline in Overseas Profits

Lower sales vis-a-vis game machines in Northeast Asia

Impact of change in depreciation and amortization +¥200 million

Higher Overseas Profits Weakness in China, but increase in North America and Thailand automotive related business

Impact of change in depreciation and amortization +¥100 million

FYE Mar. 2012

Year-End

FunctionalMaterials

Automotive& Energy

FYE Mar. 2013

Year-End

AdvancedMaterials &Processing

Electronics Life &Healthcare

Other,Corporate,

Eliminations

: Positive Factors: : Negative Factors

9

D li i B l

Factors Impacting Operating Income (Factors Impacting Operating Income (PYPY Actual vs. CY Actual vs. CY Actual)Actual) (2)(2)

(100 millions of yen)

180

Goodwill, Intangible Assets Amortization -¥3,000 +18

-1

17

Declining Balance Straight-Line

160

,million

+1+18

+3

-17

-3 -4

140

+26

155

CAPTEX Co., Ltd.Setsunan Kasei Co., Ltd.FUKUI YAMADA CHEMICAL CO., LTD. Nagase Techno-Engineering Co.,Ltd. etc

GC: Smart Phones, TabletsStrong Product Performance

120 134

100

FYE Mar. 2012

Year-End

Hayashibara(including goodwill, intangible

asset amortization)

OverseasFYE

Mar.2013Year-End

Change inDepreciation

Method

NewConsolidatedCompanies

NAGASE& CO., LTD.

DomesticManufacturing

DomesticSales

Companies,Etc.

Other,Corporate,

Eliminations

: Positive Factors: Negative Factors

10* GC = Greater China

Ordinary Income and Net Income

O di I ¥17 9bil +¥2 2bil +14 3%Ordinary Income: ¥17.9bil +¥2.2bil +14.3%

Net Income: ¥14.1bil +¥5.6bil +65.5% (100 millions of yen)

200( y )

156179

150

156141100

8550

00

11

Ordinary Income Net Income

12/03 12/03 13/0313/03

Changes in Major Balance Sheet Accounts

(100 millions of yen)(100 millions of yen)

Assets １２/０３ １３/０３ Change Liabilities and Net Assets １２/０３ １３/０３ Change

Cash and time deposits ２９１ ４６６ ＋１７５Notes and accountspayable １，０９１ １,０７９ - １２

Notes and accountsreceivable １，９７７ １,９６０ - １７ Short-term loans ５０１ ３５４ - １４７

Inventories ４５２ ５１８ + ６６ Other current liabilities ２２３ ２２４ ＋０

Other current assets １０１ １１１ + １０ Long-term debt ３８２ ３２６ - ５５１０１ １１１ １０

Property, plant andequipment ５６７ ６０９ + ４２ Bonds - ３００ +３００

Intangible fixed assets ５７４ ５５２ - ２１Accrued retirementbenefits for employees １００ １０２ ＋２

I i i iOther long-term

Investments in securities ４９０ ５６８ ＋７８Other long termliabilities ８１ １０２ ＋２０

Other fixed assets ５３ ７８ ＋２４ Total liabilities ２，３８０ ２,４８９ +１０８

Shareholders’ equity ２，０１１ ２,１１７ +１０６

(Portion less treasurystock, at cost) （- ５４） (-７１) (-１６)

Net unrealized holdinggain on securities １２７ １７９ ＋５２

Translation adjustment - ９１ -１２ ＋７９Translation adjustment ９１ １２ ＋７９

Stock acquisition rights １ ０ - ０

Total net assets ２，１２７ ２,３７８ +２５０

12

(Equity ratio) （45.4%） （46.9%） (+1.5% )

Total assets ４，５０８ ４,８６７ + ３５９Total liabilities and netassets ４，５０８ ４,８６７ +３５９

Cash Flows

◆ Operating Cash Flows: ¥18 5 billion net inflow Payments of ¥6 3 billion in corporate tax etc offset by ¥19 4 billion in

(100 millions of yen)

◆ Operating Cash Flows: ¥18.5 billion net inflow. Payments of ¥6.3 billion in corporate tax, etc. offset by ¥19.4 billion in income before income taxes and recovery of ¥7.4 billion in depreciation and amortization.

◆ Investment Cash Flows: Sales of ¥3.2 billion in tangible fixed assets offset by ¥12.2 billion intangible/intangible asset purchases

◆ Financing Cash Flows: Inflow of ¥29.8 billion in corporate bond issuance, outflow of ¥16.2 billion in repayment of debt(100 millions of yen)

１３/０３ Main breakdown １２/０３

Net cash provided by (used in)operating activities

Income before income taxes +19.4 bilDepreciation and amortization +7.4 bilGoodwill amortization +1 6 bil

＋１８５Goodwill amortization +1.6 bilImpairment loss +1.8 bilWorking capital +0.1 bilCorporate tax, etc. -6.3 bil

+ ５６

Net cash provided by (used in)９５

Purchases of property plant and equipment -10.5 bilP h f i t ibl fi d t 1 7 bil ８１investing activities - ９５ Purchases of intangible fixed assets -1.7 bilSales of tangible fixed assets +3.2 bil

- ８１

Net cash provided by (used in)financing activities

+ １１

Inflow from corporate bond issuance +29.8 bilInflow from long-term debt +4.6 bilRepayment of long-term debt -16.2 bil ＋５６９Payment of dividends -3.1 bil

Net increase (decrease) in cashand cash equivalents ＋１２６

Exchange gains related to cash and cash equivalents (including+¥2.4bil) -１８８

Increase (decrease) in cash and

＋Nagase Electronics Technology ( Xiamen) Co., Ltd. +0.6 bil

＋cash equivalents accompanyingconsolidation

＋９ Nagase India Private Ltd. +0.1 bilNagase Tool Matex Co., Ltd., three others +0.1 bil

＋１

Increase (decrease) in cash andcash equivalents accompanyingchanges in fiscal years

＋３７Japan +¥0.1bil, Greater China +¥3.8bil, Asean -¥0.5bilEU +¥0.2bil, North America +¥0bil ―

13

changes in fiscal years

Cash and cash equivalents at theend of the period ４５８

Cash and cash equivalents on the balance sheet ¥46.6bil ¥0.8bil in certificates of deposit due after three months = ¥45.8bil

２８５

(Millions of yen)

Earnings of Major Consolidated

(Millions of yen)

Company Name Net Sales vs. PYOperating

Profitvs. PY Net Income vs. PY

ParentCompany

Nagase & CO., LTD. 423,513 97% 2,979 116% 6,652 87%Companyg , , , ,

Manufacturing

Nagase ChemteX Corp. 26,273 97% 2,743 100% 1,382 90%

Hayashibara Co., Ltd. 25,223 - 2,603 - 2,121 -gcompanies

Totaku Industries, Inc. 7,571 99% 196 84% 185 166%

Total for manufacturing* 89,210 126% 5,899 140% 1,950 115%

29 141 98% 304 112% 159 121%

Domesticsalescompanies

Nagase Plastics Co., Ltd. 29,141 98% 304 112% 159 121%

Nagase Chemical Co., Ltd. 15,805 117% 197 96% 111 107%

Nagase Elex Co., Ltd. 8,174 109% 166 93% 96 103%co pa es Nagase Elex Co., Ltd. 8,174 109% 166 93% 96 103%

Total for domestic sales* 79,586 90% 1,248 84% 638 100%

Nagase (Hong Kong) Ltd. 57,467 116% 1,052 134% 798 104%

Overseassalescompanies

Nagase (Thailand) Co., Ltd. 29,675 125% 970 122% 730 122%

Nagase America Corp. 23,593 115% 439 109% 274 110%

Total for overseas sales* 276,924 119% 5,160 108% 4,111 101%

14

* Note) Hayashibara earnings are theoretical earnings after goodwill and intangible asset amortization; impact of taxes not reflected.

* Note) Category totals are the simple sum of figures for each company and do not match consolidated figures.

Our basic policy is to continue paying a stable dividend to our shareholders in line

Dividends

Our basic policy is to continue paying a stable dividend to our shareholders in linewith our consolidated results as we improve our earnings power and managementstructure. We look to improve per-share dividends based on considerations ofconsolidated payout ratio and consolidated dividend to equity ratio.

(%)(% en)

240(%)(%, yen)

120

30

28 1

10

20

18 17 1616

2224

26 28

00

10

05/03 06/03 07/03 08/03 09/03 10/03 11/03 12/03 13/03 14/03

1015

18 17 1616

05/03 06/03 07/03 08/03 09/03 10/03 11/03 12/03 13/03 14/03forecast

Dividend per share (left axis) Payout ratio (left axis) DOE (right axis)(%)

05/03 06/03 07/03 08/03 09/03 10/03 11/03 12/03 13/03 14/03 forecast

15* A year-end dividend for FY ended Mar. 2013 will be discussed at shareholders meeting to be held in June 2013.

Payout ratio 12.3 14.9 17.0 21.8 35.4 27.3 22.1 36.0 23.4 24.5

DOE 0.79 1.06 1.15 1.08 1.07 1.08 1.42 1.52 1.53 1.52

FYEFYE MarchMarch 20142014 Earnings ProjectionsEarnings ProjectionsFYE FYE March March 2014 2014 Earnings Projections Earnings Projections

16

(100 illi f i h )

FYE March 2014 Earnings Projections

(100 millions of yen, except earning per share)

13/03Actual

14/03Forecast

Change vs. PY

Net sales ６，６６２ ７，６４０ +９７７ １１５％

Gross profit(GP rate)

８２５＜12 4％＞

９３４＜12 2％＞

+１０８＜ 0 2％＞

１１３％(GP rate) ＜12.4％＞ ＜12.2％＞ ＜- 0.2％＞

Operating profit １５５ １９２ +３６ １２３％

Ordinary income １７９ ２１０ +３０ １１７％

Net income １４１ １４５ +３ １０２％Net income １４１ １４５ +３ １０２％

Dividends per share ¥２６ ¥２８ +２円 -

Assumed exchange rate($1US) ¥８３．３ ¥９５．０ 　-¥１１．７ -

・ Higher Overseas Profits / Lower Domestic Profits

17

Higher Overseas Profits / Lower Domestic Profits・ Narrower losses among unprofitable subsidiaries +¥1.3 billion

Impact of actuarial losses for retirement benefit obligations -¥1.5 billion (13/03 -¥0.7 billion)

FYE March 2014 Forecast by Segment

<Net Sales Forecast by Segment>

3,000

<Operating Profit by Segment>

(100 millions of yen) (100 millions of yen)

2,550 2,500

3,000 13/03

14/03

63

90

70

90 13/0314/03

2,145 1,810

2,000 44

32

63

40

52 50 50

1,658

1,244

1,490 1,500

32

7 13

27

10

30

,

830

775

940 840

500

1,000

(30)

(10)

8 10 0

FunctionalMaterials

AdvancedMaterials &P i

Electronics Automotive& Energy

Life &Healthcare

(32)(40)

(50)

(30)

FunctionalMaterials

AdvancedMaterials &P i

Electronics Life &Healthcare

Other,Corporate,

Eli i tiOther

Automotive& Energy

18

Materials Processing & Energy Healthcare Materials Processing Healthcare Eliminations& Energy

* Beginning FYE March 2014, the abrasives sales business for semiconductors and HDD industry (formerly under Functional Materials) will be moved under the Electronics business segment. Sales business for cosmetics industry (formerly under Functional Materials) will be moved under the Life & Healthcare business. FYE March 2013 results have been recalculated to reflect this change.

Operating Profit Change Factors (PY Actual vs. Forecast)

(100 millions of yen)

220

+5

Domestic ＋¥1,300 millionStronger performance in smart phones, tablet productsHigher chemicals for LCD

O ＋¥1 300 illi

Domestic ＋¥100 millionHigher compact power supply

Overseas ＋¥300 millionIncrease in auto production overseas

NAGASE & CO., LTD.Actuarial differences in retirement benefit obligation-¥800 million

200

+5

+26

-14

-7

Overseas ＋¥1,300 millionStronger performance in smart phones, tablet products

180

+18 192

Domestic +¥200 millionHigher coating for construction

Overseas ＋¥600 millionStronger performance in Northeast Asia, Southeast Asia

Advanced investment for business expansionHigher Hayashibara costs -¥500 million(Raw material cost, amortization, development costs)Higher overseas development costs -¥300 millionBeauty Care Products BusinessMarket Development Costs ¥200 million

140

160

155

+8Domestic ＋¥600 million

Improved profitability at unprofitable manufacturing subsidiaries

O erseas ＋¥1 100 million

Market Development Costs -¥200 millionHigher amortization in Enzymes business -¥200 millionGenerics relatedAmortization, Development Costs -¥200 million

120

140 155 Overseas ＋¥1,100 millionMainly higher sales of office equipment and appliance resin China, Southeast Asia

FYE Mar. 2013

ActualElectronics

FYE Mar. 2014Forecast

120 FunctionalMaterials

AdvancedMaterials &Processing

Life &Healthcare

Automotive& Energy

Other,Corporate,

Eliminations

: Positive Factors: Negative Factors

19

Progress of Mid-Term Management Plan

[Business Improvements in Target Fields]

Fields Using Bio-Related Technologies1

● Grew sales of core Hayashibara products; launched new products. Revised overseas sales activities to begin global rollout. ● Next-generation agri-industrial bio production conducted with Kobe University and others selected as a continuing program by

the Ministry of Education Culture Sports Science & Technology

[Business Improvements in Target Fields]

the Ministry of Education, Culture, Sports, Science & Technology Nagase R&D Center takes main role in advancing research and development in bio technologies through this program

● Established local entity in Brazil to research bio business markets in the large food and agriculture sectors in South America

Fields Using Environment and Energy Technologies2

●● Start of renewable energy feed-in tariff scheme resulted in strong sales of photovoltaic power systems● CAPTEX plant at full production making secondary battery modules for eco-friendly cars

Compact power supply scheduled for market launch in June 2013; faster rollout of applied development utilizing CAPTEX technologies

Fields Using Electronics Technologies3

● Global sales, procurement activities for smart phones and tablets resulted in strong component sales for the market● Engineered Materials Systems Inc. (U.S) turns in strong performance of conductive materials sales for tablet electronics

components● Nagase ChemteX (Wuxi) Corp. begins construction of research and development facility to build up product development capacity

meeting local needs

● Established Investment Guidelines to clarify investment standards; sped up decision-making process; improved post-investment monitoring

● Initiatives to visualize and ameliorate risk for stronger risk management from the standpoint of a manufacturing firm● Established Regional Operating Centre in Singapore

[Stronger Management Systems]

● Group-wide staff exchange and improved human resources systems

[Key Indicators]FY 2012 Actual FY 2013 Forecast FY 2014 Target

Net sales ¥666.2 billion ¥764.0 billion ¥800 billion

20

Operating profit ¥15.5 billion ¥19.2 billion ¥30.0 billion

ROE 6.5% 6.2% 8.0%

Investment Results of 「 」

Investment in manufacturing functions research and development functions technology

13%

Investment in manufacturing functions, research and development functions, technology and information capacity, and global network for unique strengths and competitive advantage; improved corporate value through improved quality of business

Manufacturing ratio (Net sales) Investment (3 years)

Schedule

40 0

13%

10%

15%

800

1,000 Overseas Manufacturing Co's

Domestic Manufacturing Co's

Manufacturing ratio

(100 millions of yen)

N I t t

¥40.0 billion

5%

10%

200

400

600

40%80

Manufacturing ratio (Operating profit)

New Investment in Target Fields

¥30.0 billionActual

¥12.0 billion

0%001/3 02/3 03/3 04/3 05/3 06/03 07/03 08/03 09/03 10/03 11/03 12/03 13/03 14/03

Forecast

37%(100 millions of yen)

20%

30%

40%

40

60

80Overseas Manufacturing Co's

Domestic Manufacturing Co's

Manufacturing ratioUpdate Existing Facilities

13/03 Actual ¥12.0 billion

¥12.0 billion

0%

10%

20%

0

20

40 Facilities¥10.0 billion

-10%

0%

-20

001/3 02/3 03/3 04/3 05/3 06/03 07/03 08/03 09/03 10/03 11/03 12/03 13/03 14/03

Forecast

２１

Earnings and Investment

Expand, ImproveExpand, ImproveRestructureRestructure PromotePromote

Improve Business and Management

Quality

Improve Business and Management

Quality

Accelerate CHANGE

Accelerate CHANGE

ＷＩＴ２０００ＷＩＴ２０００ＷＩＴ２０００ＷＩＴ２０００ ＷＩＴ２００８ＷＩＴ２００８ＷＩＴ２００８ＷＩＴ２００８ＷＩＴＷＩＴ2121ＷＩＴＷＩＴ2121

ImproveImprove

¥27,700 million

¥23,700 million

¥20,200 million

¥107,400 million

QualityQuality

““ CHANGE” ” 11

Investment

CHANGECHANGE

¥40,000 million

300

3508,000Net sales

(100 millions of yen) (100 millions of yen)

250

300

7,000Operating profit

150

2006,000

50

1005,000

04,00001/03 02/03 03/03 04/03 05/03 06/03 07/03 08/03 09/03 10/03 11/03 12/03 13/03 14/03

Forecast15/03

Forecast

22

Life & Healthcare Growth StrategiesLife & Healthcare Growth StrategiesLife & Healthcare Growth StrategiesLife & Healthcare Growth Strategies

Director and Executive Officer, Life & Healthcare

Osamu Morishita

,

23

Covered Topics

1. The Business Mission of Life & Healthcare Segment

2 Th Lif & H lth B i d F t Di ti2. The Life & Healthcare Business and Future Direction

3. The Life & Healthcare Organization

4. Recent Capital Investment for Production

5 Sales Forecast by Division (2012- 2014)5. Sales Forecast by Division (2012- 2014)

6. Hayashibara’s Current Status and Future Outlook

7. The Acceleration of R&D in the saccharide and enzyme business

8. The business policies of Pharmaceutical, Medical Materials and Personal Care

24

Business Mission

NAGASE Value Chain Creation

Electronics

Functional Materials

Advanced Materials

Electronics

Automotive and Energy

Life & Healthcare

‘‘Contribute to healthier and happier lifestylesContribute to healthier and happier lifestyles’’

(Create a business that adapts to market changes; strengthen management systems)

Use the Group's trading company functions and Group-wide corporate management resources to capture markets globally, growing our business in food and beverages, cosmetics andgrowing our business in food and beverages, cosmetics and toiletries, and pharmaceuticals and medical materials fields

25

Business Fields and Future Direction

1. Open new opportunities in the food industry focusing on saccharide and enzyme functional materials (From Food to Feed)

2. Stabilize and grow business in pharmaceuticals and medical materials, using formulation, synthesis and pharmaceuticals functionssynthesis, and pharmaceuticals functions

3. Expand Hayashibara sales in cosmetics and toiletries from a global perspective; grow business value by developing functional materials as a trading company

4. Contribute to food by fostering agribusiness through functional materials (From Food to )

Contribute to Food Pharmaceutical/Medical Materials

Feed)

Foods/Beverages

Cosmetics/

Human Markets

Food

Peo

p

Intelleproperty

Pharmaceutical/Medical

MaterialsCosmetics/Toiletries

Formulation Technologies

Functional Saccharide Technologies

Enzyme Technologies

Food

ple/A

nim

als,

ectual y C

atalog

ec o og esec o og esec o og es

Feed/Fertilizer/Farming

Animal/Plant

MarketsFeed

Plan

ts

Agriculture

Life & Healthcare Business FieldsLife & Healthcare Business Fields

26

Organization Structure

Lif & H lth P d t D t P l C P d t Di

Food Material Div.

Life & Healthcare Products Dept.

Pharma・Medical Div.

Personal Care Products Div.

B t C P d t D t

Life & Healthcare

Beauty Care Products Dept.

Organization Markets Active Fields Group Manufacturing Companies Representative Products

Food Material Div. Foods, AgricultureOverseas/Domestic

Hayashibara TREHA® and other functional saccharides

Nagase ChemteX Enzymes for food (Processed)

Organic fertilizers processed foodDomestic Kawai Hiryo Organic fertilizers, processed food materials

Personal Care Products Div. Cosmetics/Toiletries Overseas/Domestic

Hayashibara AA2G® and other functional saccharides

Phospholipid and other enzymeNagase ChemteX Phospholipid and other enzyme conductors

Pharma・Medical Div. Pharmaceuticals, Medical Materials

Overseas/DomesticNagase Medicals Anti-cancer drugs

Hayashibara Maltose Functional Saccharides

27

Medical Materials Hayashibara Maltose Functional Saccharides

Domestic Nagase ChemteX Pharmaceutical ingredients (API)

Recent Production Facility Investments

Hayashibara Co., Ltd. (Okayama Prefecture)New Plant at Fujisaki and Imabo areas(Plant No. 1 scrap and build)Improved Production Functions Stable Supply Efficient Production Pilot Production for Newly Developed Products2015 Spring Planned Completion2015 Spring Planned Completion

Nagase ChemteX Corporation (Fukuchiyama Plant)(total floor space 2,200m2)

* Conceptual Diagram

( p )◆ Kosher, halal certification.

Completion of new enzyme production facilitiesShore up business foundation to expand enzyme sales globallyGroundwork for expanding food and beverage business

Nagase Medicals Co., Ltd. (Itami City, Hyogo Prefecture)

Groundwork for expanding food and beverage businessCompleted End of 2012; Full Operations 2012

Nagase Medicals Co., Ltd. (Itami City, Hyogo Prefecture)

◆ Anti-cancer drugs (generics) Vial Injector ProductionNew Facility Three Floors (Floor Space 1,000m2)

2013 Spring Completed

28

Net Sales Forecast by Segment (FY 2012 - 2014)

250

300

350

400 (100 millions of yen)

100

150

200

2502012

2013

2014

0

50

100

Food Materials (FM) Personal Care (PC) Pharma・Medical (PM)

FY 2014 ¥92.0 billionFY 2012 ¥77.5 billion FY 2013 ¥84.0 billion

Food Materials (FM) Personal Care (PC) Pharma・Medical (PM)

FM35.2

PM29.8

FM30 8

PM26.9

PM28.0

FM31.9

PC20.4

30.8

PC14.4

26.9

PC18.5 20.4

* The Life & Healthcare segment is home to the Beauty Care Products Dept., which handles sales of cosmetics and health foods. Earnings and forecasts for this department are as follows:FY 2012: ¥5.4 billion FY2013 Forecast: ¥5.6 billion FY 2014 Forecast: ¥6.6 billion

29

Expand Overseas Sales and

Hayashibara Current Status and Future

Sales Diagram(Monetary Basis)

Expand Overseas Sales and Shore Up Development Applications

2012 ¥25.0 billion 2014 ¥28.5 billion

EUGC

KOREA

ASEANAMERICA

Drugs Foods

Perfumes

JAPAN 22.0EXPORT 3.0

30

Promoting Saccharide/Enzyme Business Research and Development

New Materials Development

New Saccharides/Glycoside

(Highly branched glucan)

Saccharide New ApplicationA li ti S t Customer Application

g )

Saccharide Materials

New Application Development

(For Functional Living)

Application Support (Customer Support)

CustomerSupport

Application Development

<Ingredients Long-Lasting Mouth Feel etc>

Moisturizing, Nutrition Functions

Enzyme Library (Actinomycetes)

Physiological Functions, Agricultural, etc.

y y ( y )

Production of Enzyme Reactants

Industrial MaterialsEnzyme Formulation

Bio-Based Chemical Development

Reactants

“Phospholipid Products”Food, Sanitary,

Agricultural Industries

p

“Unique Modified Enzymes”

31

Hayashibara New Product Project(Highly Branched Glucan)

<Highly branched glucan: Polysaccharide materials manufactured using Hayashibara enzyme technologies>

aa Highly branched

St h (Gl ) a

a

d

g yglucanStarch (Glucan)

d

d c c c c

cc

Hayashibara Unique EnzymesGlucose Hayashibara Unique EnzymesGlucose

A d t th J S i t f Bi i

Projected representation of known components for starch, Highly branched glucan

Announced at the Japan Society for Bioscience, Biotechnology and Agrochemistry March 26, 2013

“ Effect on limiting fatty accumulation on the liver”g y

“ Effect on limiting lipid disorder after eating”

T th di t fib k t Gl b l i

32

To the dietary fiber market Global expansion

Pharmaceutical/Medical Materials and Personal Care Business Policies

edic

al

ess

Formulation(Anti-Cancer Drugs

Overseas Pharmaceutical Ingredients

euti

cal/M

eal

s B

usi

ne

Diluting AgentAdditivesChemicals

Pharmaceutical Ingredients (API)

Ph

arm

ace

Mat

eria

Medical MaterialsP Medical Materials <Lubricant Anti-Inflammatory etc.>

Whitener (AA2G ®)Accelerate Global Expansion

Formulation

Expand Foundational Materials

Accelerate Global ExpansionPersonal

Care Business

Global Supply Functions

Pharmaceutical/Medical Materials Expanding business for anti-cancer and related products byPharmaceutical/Medical Materials ... Expanding business for anti-cancer and related products by using formulation technologies

Personal Care ... Strengthen business foundation by developing wider products based on AA2G®

33

A Technology- and Intelligence OrientedCompany that Turns Wisdom into BusinessCo pa y a u s sdo o us ess

NAGASE & CO LTDNAGASE & CO., LTD.http://www.nagase.co.jp

This presentation materials contain forward-looking projections based on assumptions, forecasts, and plans as of May 27, 2013. Actual earnings may differ from projections due to risks anduncertainties in the future global economy, competitive landscape, currency exchange rates, etc.